Your Finances: Review your 2012 financial goals now

As you are relaxing over the weekend, contemplating how to repurpose the leftover turkey into a tasty new dish, this is a good time to revisit your annual financial goals.

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By Laura Medigovich

recordonline.com

By Laura Medigovich

Posted Nov. 25, 2012 at 2:00 AM

By Laura Medigovich

Posted Nov. 25, 2012 at 2:00 AM

» Social News

As you are relaxing over the weekend, contemplating how to repurpose the leftover turkey into a tasty new dish, this is a good time to revisit your annual financial goals.

We have about five weeks left in the year, so there is still time to make directional shifts.

Here are a couple of long-term goals which are good to review heading into a new year.

Saving for college can seem like a daunting task, with inflation for college averaging between 6 percent and 7 percent annually.

The 529 savings plans are a tax-advantaged type of qualified tuition program parents can use to save for college.

What was your college savings goal for the year? You still have time to make additional contributions before the end of the year and possibly save on state income taxes, to boot.

New York State's 529 plans allow New York taxpayers up to a $5,000 state tax deduction on annual contributions. Married couples filing jointly in New York can deduct up to $10,000 of contributions annually.

For 2012, you are allowed to contribute the lesser of $17,000 or 100 percent of your compensation to your company-sponsored 401(k). If you are over 50 years old, you are allowed an additional catch-up contribution of $5,500, for a total allowable contribution of $22,500 this year.

How close are you to meeting your annual retirement savings goal? Go online to check your annual contributions to date. Then you can calculate if you are on target to meet your annual savings goal by the end of the year.

If you are not, then consider increasing your contribution amount. Ideally, you could aim to contribute the maximum amount. That may not be feasible, since there are only five weeks left in the year and holiday expenses are vying for your dollars, as well.

However, keep in mind that any increase in your retirement account contributions rewards you twice. First, you get the short-term benefit by decreasing your taxable income for 2012, and then you get the long-term benefit of increased retirement savings.

It is hard to find a holiday gift with as many benefits, as this one is a gift to yourself that will continue giving long into the future.

So, as you are enjoying your leftovers, football and shopping this weekend, take a few minutes to ensure your year-end financial goals are also poised to score a touchdown.

-- Laura Medigovich is a certified financial planner and vice president for M&T Bank's Hudson Valley region. The views expressed by the author are her own and are not endorsed by M&T Bank, M&T Securities or their affiliates.